International Final Exam
C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the-pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than _____. A. $400 B. $1,200 C. $ 2500 D. $ 3700 E. $ 4200
$1,200
The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget. A. 10 B. 25 C. 30 D. 45 E. 55
10
The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities. A. 9 B. 15 C. 25 D. 33 E. 48
25
Which of the following organizations provides a formal structure for the major governments of the Asian-Pacific Rim, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration? A. NAFTA B. ASEAN C. ASEAN+3 D. SADC E. APEC
APEC
The primary multinational trade group in Asia is _____. A. NAFTA B. COMESA C. CEFTA D. SADC E. ASEAN
ASEAN
One result of the Asian financial crisis of 1997 to 1998 was the creation of _____. A. SADC B. NAFTA C. ASEAN+3 D. CEFTA E. COMESA
ASEAN+3
Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States's granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one? A. Inclusion in the board of the World Bank. B. Admission to the World Trade Organization. C. Signing of the new ASEAN pact. D. The handover of Hong Kong by the British to China. E. Inclusion of Hong Kong as a special administrative region (SAR) of China.
Admission to the World Trade Organization
ECOWAS, SADC, and EAC are active regional cooperative groups in _____. A. North America B. Australia C. Africa D. Europe E. Asia
Africa
Most eastern European countries are privatizing state-owned enterprises, establishing free market pricing systems, and: A. permitting greater government control/intervention in foreign trade. B. increasing trade barriers. C. Africa. D. making import controls stringent. E. switching to a socialistic economy.
Africa -- relaxing import controls and wrestling with inflation
Which of the following accounts for the lion's share of Mercosur exports to Europe? A. Clothing and apparel. B. Telecommunication equipment. C. Consumer durables. D. Petroleum and minerals. E. Agricultural and agro-industrial products.
Agricultural and agro-industrial products
The _____ increases the authority of the institutions of the European Union and is designed to accommodate the changes brought about by the monetary union and the admission of new members. A. Treaty of Rome B. Single European Act C. Maastricht Treaty D. Expansion Act E. Amsterdam Treaty
Amsterdam treaty
Which of the following is an example of comparative advertising? A. An ad using a scantily clad model to promote a soft drink. B. An ad showing a celebrity smoking his preferred brand of cigarettes. C. An ad showing a dog choosing one brand of dog food over another. D. An ad showing the superiority of synthetic materials used in its products as compared to cotton. E. An ad using shocking or taboo material to promote a product.
An ad showing a dog choosing one brand of dog food over another
Which of the following countries was involved in the formation of the free trade group Mercosur? A. Australia B. China C. Argentina D. Russia E. Thailand
Argentina
The first Soviet republics to declare independence from the Soviet Union were the _____. A. Russian SFSR B. Ukrainian SSR C. Baltic States D. Transcaucasian SFSR E. Byelorussian SSR
Baltic States
Grameen Bank is a private commercial enterprise in _____. A. Bangladesh B. China C. Japan D. Sri Lanka E. South Korea
Bangladesh
This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion. A. The coastal Dalian city B. The Pearl River Delta C. The Yangtze River Delta D. Beijing-Tianjin E. Fujian
Beijing-Tianjin
Which of the following regions is considered as the information technology (IT) corridor in north China? A. Beijing-Tianjin B. Heilongjiang C. Liaoning D. The Jilin River Delta E. Fujian
Beijing-Tianjin
In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store? A. Toys "R" Us B. Walmart C. Costco D. Benetton E. IKEA
Benetton
IBM entered into a venture with the Chinese Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the _____. A. Blue Connect B. China Express C. China Blue D. Blue Express E. China Connect
Blue Express
Bahamas is a member of _____. A. CARICOM B. NAFTA C. CFTA D. LAIA E. Mercosur
CARICOM
Though now disbanded, which of the following was considered to be the most notable enforced political union of the last forty years? A. NATO B. NAFTA C. MERCOSUR D. COMECON E. LAFTA
COMECON
In which of the following countries is the literacy rate 100 percent? A. Mexico B. Canada C. Colombia D. Argentina E. Peru
Canada
The three members of the North American Free Trade Agreement (NAFTA) are: A. The United States, the United Kingdom, and France. B. The United States, Cuba, and Uruguay. C. Canada, China, and Japan. D. The United States, France, and Germany. E. Canada, Mexico, and the United States.
Canada, Mexico, and the United States
The success of the Caribbean Free Trade Association led to the creation of the _____. A. Central American Integration System B. Community of Latin American and Caribbean States C. Caribbean Community and Common Market D. Union of South American Nations E. United Nations Economic Commission for Latin America and the Caribbean
Caribbean Community and Common Market
Which of the following countries has the largest number of retailers? A. United States B. Argentina C. China D. South Africa E. Japan
China
Which of the following countries is NOT a member of the Caribbean Community and Common Market (CARICOM)? A. Barbados B. Dominica C. Grenada D. Jamaica E. China
China
_____ is now Japan's most important trading partner. A. Malaysia B. The United States C. Bangladesh D. Bahrain E. China
China
C. K. Prahalad has cited two primary misconceptions behind the international marketers ignoring the bottom-of-the-pyramid markets. One of the reasons is that the products and services developed for more affluent consumers are not appropriate for these markets. Which of the following is the other misconception? A. Unwillingness of consumers in the bottom-of-the-pyramid markets to buy international products. B. The lack of uniformity in bottom-of-the-pyramid markets. C. The heavy taxation system in bottom-of-the-pyramid markets allows little profit. D. Consumers in the bottom-of-the-pyramid markets lack both money and technology. E. Consumers in the bottom-of-the-pyramid markets are characterized by conservative traditions and culture.
Consumers in the bottom-of-the-pyramid markets lack both money and technology
Which of the following countries is a member of the free trade agreement DR-CAFTA? A. Bahrain B. Bhutan C. Morocco D. Costa Rica E. Oman
Costa Rica
The _____ is the decision-making body of the European Union and can enact into law all proposals by majority vote except for changes in tax rates on products and services, which require unanimous vote. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers
Council of Ministers
Which of the following is true of advertising agencies for international advertising? A. Cross-cultural communication between a foreign client and a local agency can be problematic. B. A multinational agency always has the best feel for a market. C. A multinational agency provides the best cultural interpretation in a situation in which local modification is required. D. A local domestic agency may provide a company with a high level of sophistication. E. Agency commission patterns are consistent throughout the world.
Cross-cultural communication between a foreign client and a local agency can be problematic
Which of the following countries is a member of the Latin American Integration Association (LAIA, aka ALADI)? A. Bahamas B. Cuba C. Nicaragua D. Costa Rica E. Honduras
Cuba
Which is the comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States that includes a wide array of tariff reductions aimed at increasing trade and employment? A. DR-CAFTA B. NAFTA C. CFTA D. Jamaica E. Mercosur
DR-CAFTA
_____ at the southern tip of the Liaodong Peninsula in China is the focus of bi-national relationships and has one of the world's largest and most modern port facilities. A. Dalian B.Jilin C. Heilongjiang D. Guangdong E. Hainan
Dalian
Which of the following countries rejected the euro? A. Austria B. Greece C. Finland D. Denmark E. Spain
Denmark
Which of the following is one of the important reasons behind the fact that there is no one-growth strategy for China? A. Inclusion of Hong Kong as a special administrative region of China. B. Each region in China being at a different stage economically. C. Inability to prevent the privatization of its state owned enterprises. D. Each region within China being completely isolated from other regions. E. Complete absence of autonomy in the various regions of China.
Each region in China being at a different stage economically
_____ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI). A. Economic repression B. Economic duress C. Economic equilibrium D. Economic development E. Economic sustainability
Economic development
Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task? A. Political stability B. Economic level C. Social norms D. Literacy level E. Cultural orientation
Economic level
Which of the following is the biggest threat to the fast pace of growth China is experiencing? A. Increased opening of the market to foreign investments. B. Trade isolation by other ASEAN countries. C. Losing the permanent normal trade relations (PNTR) status conferred by the United States. D. Reformation of the traditional legal system. E. Economic volatility that accompanies fast growth.
Economic volatility that accompanies fast growth
Which of the following is the best way to stimulate economic development and growth from within developing countries? A. Imposing embargoes. B. Encouraging governmental regulations. C. Restricting immigration. D. Increasing tariffs on exports. E. Encouraging entrepreneurial activities that are networked.
Encouraging entrepreneurial activities that are networked
What is happening in BEMs today is analogous to what happened in: A. Saudi Arabia in the 1800s. B. India during the British Empire period. C. Russia after the fall of the Czar. D. Europe after World War II. E. Iraq between 1890 to 1990.
Europe after World War II
The _____ initiates policy and supervises its observance by member states, and it proposes and supervises execution of laws and policies. A. United Nations B. World Trade Organization C. European Commission D. Commonwealth of Independent States E. Council of Ministers
European Commission
The _____ originally had only a consultative role that passed on most European Union legislation but now has the power to amend and adopt legislation. A. Court of Justice B. European Parliament C. Council of Ministers D. European Commission E. Legislative Commission
European Parliament
Improving economic performance, deciding how to limit political aspects, and deciding about further enlargement are all the long-term challenges faced by the _____. A. UN B. WTO C. European Union D. OPEC E. SAHK
European Union
Of all the multinational market groups, none has been more secure in its cooperation or more important economically than the: A. Newly Independent States. B. Economic Community of West African States. C. United Nations. D. European Union. E. Trans-Pacific Union.
European Union
The European Commission, the Council of Ministers, the European Parliament, and the Court of Justice are institutions of the _____. A. COMECON B. European Free Trade Area C. European Economic Area D. European Union E. Trans-Pacific Union
European Union
The _____ is the European Union's Supreme Court. A. International Court of Justice B. European Court of Justice C. International Criminal Court D. European Common Judicial Council E. European Security Council
European court of justice
Which of the following is an indicator of economic development? A. Population expansion. B. Expanding state ownership. C. Extent of social overhead capital. D. Social reformation. E. Cultural diversity.
Extent of social overhead capital
General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers. A. Toyota Motor Corporation B. Honda Motor Company C. Ford Motor Company D. Nissan Motor Company E. Tata Motors
Ford Motor Company
Which of the following is true about the present state of foreign businesses in most developing countries? A. Foreign investors are seen as vital partners in economic development. B. Most developing countries discourage or forbid foreign investment. C. Multinational firms are expropriated and charged with excessively high tariffs and quotas. D. Foreign investors are considered exploiters of resources. E. Foreign investment is banned in most developing countries.
Foreign investors are seen as vital partners in economic development
Which of the following is the stereotype of businesspeople in the Northeast area of China? A.Loud and argumentative B. Cold and businesslike C. Aggression D. Dishonesty E. Forthrightness
Forthrightness
The most rapidly growing economies in the Asia Pacific region during the 1980s and 1990s, Hong Kong, South Korea, Singapore, and Taiwan are often referred to as the _____. A. Four Lions B. Four Elephants C. Four Dragons D. Four Horses E. Four Swans
Four Dragons
Which of the following is a fully industrialized country? A. Brazil B. Russia C. Germany D. Argentina E. China
Germany
All of the following statements are true regarding Mercosur EXCEPT that: A. it is the second-largest common-market agreement in the Americas after NAFTA. B. the Treaty of Asunción provided the legal basis for Mercosur. C. it is the most influential and successful free trade area in South America. D. Mexico has observer status in Mercosur. E. Germany is a member of Mercosur.
Germany is a member of Mercosur
Which of the following is a requisite for the survival of any economic union? A. Avoiding potentially significant opportunities for international business. B. Having agreements and mechanisms in place in order to settle economic disputes. C. Including, into the union, countries with diverse economies, distinctive monetary systems, developed agricultural bases, and different natural resources. D. Establishing of a comprehensive agriculture and economic policy. E. Ensuring biased treatment of goods produced within the union.
Having agreements and mechanisms in place in order to settle economic disputes
Which of the following provinces of China shares the closest economic ties with Russia? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan
Heilongjiang
In the context of international advertising, _____ is the neon capital of the world. A. Paris B. Honk Kong C. London D. Sydney E. Brasília
Hong Kong
Which of the following are the two most important steps China has to take to ensure that the road to economic growth is smooth? A. Decreasing export barriers and promoting indigenous technology. B. Strengthening the hold of its communist party and promoting innovative thinking. C. Investing in more developing countries and changing its education system. D. Acquiring membership in more regional trade blocs and increasing embargoes. E. Improving human rights and reforming the legal system.
Improving human rights and reforming the legal system
Which of the following was primarily instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. ROC acquiring U.N membership. B. Rise of communism. C. Increase in direct trade. D. American military involvement in peacekeeping. E. ASEAN mandates overruling former hostilities between member nations.
Increase in direct trade
Which of the following is one of the primary reasons behind the persistence of economic stagnation in Japan in the 1990s? A. The caste system B. Inept political apparatus C. Aggressive internal competition D. Theocratic rule E. Lack of natural resources
Inept political apparatus
Which of the following is a result of state ownership? A. Inclusion of foreign and domestic private ownership. B. Efficient state treasuries. C. Efficient public companies. D. Predictable regulatory environments. E. Inflated public-sector bureaucracies.
Inflated public-sector bureaucracies
In the international business arena, which of the following is considered to be one of Walmart's strengths? A. Clean business reputation. B. Internal Internet-based system. C. Ability to beat competitors. D. Outreach programs to placate small retailers. E. Ability to influence foreign governments.
Internal Internet-based system
In which of the following countries is the time spent on social media sites the highest? A. Britain B. United States C. Israel D. Spain E. Italy
Israel
Which of the following statements is true regarding an export management company (EMC)? A. It acts as a middleman for firms with relatively large international sales volume. B. It operates under its own name while providing services to another firm. C. It does not have direct responsibility to the parent firm. D. It acts as a middleman for firms willing to involve their own personnel in international functions. E. It calls for a minimum investment from the parent firm to get into international markets.
It calls for a minimum investment from the parent firm to get into international markets
Which of the following is true of the distribution process? A. It does not involve the physical handling and distribution of goods. B. It includes activities related to the promotion of goods and services. C. The ownership title remains with the distributor even on completion of the transaction. D. It includes buying and selling negotiations. E. The behavior of channel members is not affected by the cultural environment.
It includes buying and selling negotiations
Which of the following is true of a physical distribution system? A. It involves only the physical movement of goods. B. It is a total systems approach to the management of the distribution process. C. A decision involving an activity has no impact on the cost and efficiency of one or all others. D. It excludes the interdependence of the costs of each activity. E. It includes transportation mode, inventory quantities, and packing.
It includes transportation mode, inventory quantities, and packing
Which of the following is true of the Tianjin region in China? A. It is China's largest industrial city. B. It is China's fastest growing city. C. It has the closest economic ties with Japan. D. It is referred to as "Little Moscow." E. It harbors the world's largest and most modern port facilities
It is China's fastest growing city
Which of the following is true about privatization of state-owned enterprises? A. It results in a drain on national budgets. B. It blocks investment of capital in strategic areas. C. It often leads to modernization. D. It results in a draining of the future national resources. E. It increases the number of state-owned enterprises.
It often leads to modernization
Which of the following statements is true regarding NAFTA? A. It allows the use of standards and technical regulations as obstacles to trade. B. It was ratified and became effective in 2000. C. It prohibits U.S. and Canadian financial institutions to open wholly owned subsidiaries in Mexico. D. It has three members: Canada, South Africa, and the United States. E. Under its provisions, Canada, Mexico, and the United States have agreed to implement uniform customs procedures and regulations.
It prohibits U.S. and Canadian financial institutions to open wholly owned subsidiaries in Mexico (permitted?)
Which of the following is true of the APEC? A. Russia is not a member of this grouping. B. It is opposed to open trade. C. Its members meet once in six months. D. It promotes economic cooperation. E. It aims to increase barriers to investment.
It promotes economic cooperation
Which of the following is true of the CFTA? A. It was designed to eliminate trade barriers between the United States, Canada, and parts of Asia. B. It created several, independent commercial markets for goods and services. C. It was a customs union like the European Community. D. It involved economic and political unions. E. It provided only for the elimination of tariffs and other trade barriers between the United States and Canada.
It provided only for the elimination of tariffs and other trade barriers between the United States and Canada
Liaoning province of Northeast China has the closest economic ties with _____. A. Japan B. South Korea C. Russia D. United Kingdom E. North Korea
Japan
Which of the following Asian countries was the first to move from a status of developing country to a newly industrialized country? A. Japan B. Thailand C. South Korea D. Malaysia E. Sri Lanka
Japan
Which of the following provinces of China shares the closest economic ties with South Korea? A. Liaoning B. Jilin C. Heilongjiang D. Guangdong E. Hainan
Jilin
Which of the following is most likely to cause the biggest problems for television and radio advertisers in China? A. Low levels of television and radio penetration. B. The rigid theocratic rule. C. Lack of common language. D. The rigid adherence to traditional values. E. Lack of investment.
Lack of common language
The three contiguous provinces in Northeast China _____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy and are referred to as "dongbei", meaning Northeast, or "dong sansheng", meaning Northeastern Three Provinces. A. Gansu B. Shanxi C. Henan D. Liaoning E. Sichuan
Liaoning
The European Union was created when the 12 nations of the European Community ratified the _____ Treaty. A. Kent B. Paris C. Rome D. Cannes E. Maastricht
Maastricht
The final step in the European Community's march to union was the ratification of the _____ Treaty (1992). A. Rome B. Berlin C. Maastricht D. Barcelona E. Athens
Maastricht
The national language of China is standard _____ but more than 56 dialects and other languages are spoken across the country. A. Wu B. Min C. Hakka D. Xiang E. Mandarin
Mandarin
Which of the following is the second-largest common-market agreement in the Americas? A. CFTA B. NAFTA C. Mercosur D. DR-CAFTA E. SAFTA
Mercosur
_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay. A. NAFTA B. Caricom C. Mercosur D. SACU E. DR-CAFTA
Mercosur
Which country announced that it would seek free trade with the United States immediately after the ratification of the United States-Canada Free Trade Area (CFTA)? A. Germany B. Australia C. Mexico D. The United Kingdom E. China
Mexico
Which of the following countries is considered as a BEM (big emerging market)? A. Australia B. Egypt C. Venezuela D. Mexico E. Germany
Mexico
In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____. A. Transport and Tourism Department B. Internal Affairs and Business Council C. Ministry of International Trade and Industry D. Health and Welfare Committee E. Local Retailers Union
Ministry of International Trade and Industry
Which of the following is one of the bilateral free trade agreements that the United States has? A. CETA B. NAFTA C. NATO D. MERCOSUR E. LAFTA
NAFTA
Which of the following is the largest common-market agreement in the Americas? A. CFTA B. NAFTA C. Mercosur D. DR-CAFTA E. SAFTA
NAFTA
_____ required the United States, Canada and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped. A. Mercosur B. LAIA C. CARICOM D. NAFTA E. DR-CFTA
NAFTA
The Czech Republic, Hungary, the Slovak Republic, and Poland have become members of the _____. A. UNDP B. OECD C. WTO D. LAIA E. APEC
OECD
What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China? A. Absolute plutocracy B. Sovereignty of the provinces C. Theocracy D. Noninterventionist approach E. One country, two systems
One country, two systems
Aside from the United States and Japan, _____ is the most important single national market. A. United Arab Emirates B. Union of Soviet Socialist Republics C. People's Republic of China D. Dominican Republic E. French Southern Territories
People's Republic of China
Which of the following is the basic requisite for the development of a supranational market arrangement? A. Political amenability among countries. B. Business strategy sharing. C. Adoption of common cultural prejudices. D. Protection of the market by exercising boycotts. E. Geographic and temporal proximity among countries.
Political amenability among countries
Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions? A. Preferential tariff treatment for participating members. B. A common economic defense force with costs shared by all members. C. Formulation of cartels. D. Seeking economic dominance through boycotts of rivals. E. Movement towards a common language as a means to overcoming economic hurdles.
Preferential tariff treatment for participating members
According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets? A. Products usually developed for more affluent consumers will not be appropriate for BOPMs. B. Most BOPMs are geographically isolated and thus difficult to access. C. Protective policies make BOPMs difficult to penetrate. D. Exchange-rate fluctuations make BOPMs very volatile. E. Language and cultural barriers make BOPMs unattractive and sometimes hostile.
Products usually developed for more affluent consumers will not be appropriate for BOPMs
A survey of U.S. manufacturers shows that 95 percent of respondents with Indian operations plan on expanding, and none say they are leaving. Which of the following is primarily behind this new trend? A. Government machinery is one of the most efficient in the world. B. Living standards for expatriates are comparable to the world's best. C. Qualified labor is cheap, and the market potential is massive. D. Proximity to China makes sourcing of parts easier. E. There is a lack of competitiveness among local firms.
Qualified labor is cheap, and the market potential is massive
Which of the following is NOT a factor that has contributed to the rapid economic growth of NICs (newly industrialized countries)? A. Political stability. B. Well-established economic and legal reforms. C. Rapid increase in population. D. Outward orientation. E. Entrepreneurship.
Rapid increase in population
The Treaty of _____ established the European Economic Community (EEC) in 1957 and called for common external tariffs and the gradual elimination of intramarket tariffs, quotas, and other trade barriers. A. Kent B. Paris C. Rome D. Cannes E. Hamburg
Rome
Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content? A. Services B. Standards C. Rules of origin D. Intellectual property E. Government procurement
Rules of origin
Which of the following was designated as China's first Special Economic Zone? A. Shanghai B. Hong Kong C. Taiwan D.Beijing E. Shenzhen
Shenzhen
_____ a boomtown bordering Hong Kong and a fishing village just 20 years ago has replaced the provincial capital Guangzhou to lead the local economy. A. Dongguan B. Shenzhen C. Huizhou D. Foshan E. Zhongshan
Shenzhen
_____ has the potential to become the newest big emerging market (BEM), but its development will depend on government action and external investment by other governments and multinational firms. A. South Africa B. South America C. East Asia D. West Asia E. South Asia
South Africa
ASEAN+3 is a forum for ASEAN ministers plus ministers from China, Japan, and _____. A. United States B. South Korea C. Russia D. Australia E. New Zealand
South Korea
Which of the following is at present the center of trade links with north China and the Asian republics of the former Soviet Union? A. Japan B. South Korea C. Malaysia D. Singapore E. India
South Korea
Which of the following is one of the nations referred to as the Four Asian Tigers? A. India B. Thailand C. South Korea D. Malaysia E. Sri Lanka
South Korea
Which of these is the most advanced and viable of Africa's regional organizations? A. Economic Community of West African States. B. African Development Bank. C. Southern African Development Community. D. Organization of African Unity. E. Economic Community of Central African States.
Southern African Development Community
In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____. A. the United States B. China C. Brazil D. Uruguay E. Spain
Spain
Which of the following is true about state-owned enterprises (SOEs)? A. Privatization of state-owned enterprises blocked the release of immediate capital to invest in strategic areas. B. State ownership is the most ideal engine for economic growth. C. Privatization of state-owned enterprises continually drained the future national resources. D. State ownership has resulted in complicated and unpredictable regulatory environments. E. State ownership has consistently resulted in the inclusion of foreign and domestic private ownership, and the formation of efficient public companies.
State ownership has resulted in complicated and unpredictable regulatory environments
_____ has replaced Nanjing, to become Jiangsu province's number one economy and foreign trade center. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Suzhou
Suzhou
Which part of China is considered, by other Chinese, to be the most conservative both in terms of behavior and language? A. Hong Kong B. Mainland China C. Beijing D. Shanghai E. Taiwan
Taiwan
Which of the following is one of the major events that account for the vigorous economic growth of the ASEAN countries and their transformation from cheap-labor havens to industrialized nations? A. The decision to shift their economies from manufacturing based to commodity based. B. North Koreas' emergence as a major provider of technology and capital necessary to upgrade manufacturing capability. C. A bilateral trade agreement between the United States and Vietnam leading to the granting of NTR status to Vietnam. D. Hong Kong becoming a special administrative region (SAR) of the People's Republic of China. E. The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies.
The ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies
Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 1990s. Which of the following theory are we talking about? A. The Cultural Causation theory. B. The Power Shift theory. C. The Third Way theory. D. The Hybridity theory. E. The Cultural Capital theory.
The Cultural Causation theory
It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here? A. European Commission. B. The European Economic Community. C. The European Steel and Coal Community. D. The Asia-Pacific Economic Cooperation. E. The European Community.
The European Economic Community
Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Integrated China B. The Yellow Route C. Neo China D. Mainland China E. The Greater China
The Greater China
This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region. A. Shanghai B. Northeast China C. Yangtze River Delta D. The Greater Pearl River area E. Taiwan
The Greater Pearl River area
Which of the following is true regarding Hong Kong, post its turnover to the People's Republic of China? A. After becoming a special administrative region of the People's Republic of China, Hong Kong has lost its autonomy. B. The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own. C. The central government in Beijing has no jurisdiction over matters related to foreign affairs and defense of Hong Kong. D. The Hong Kong dollar has ceased to be freely convertible after its turnover to the People's Republic of China. E. The Hong Kong SAR government openly opposes economic policies that stresses the predominant role of the private sector.
The Hong Kong government negotiates bilateral agreements and makes major economic decisions on its own
Which of the following statements is true regarding the Internet? A. The Internet increases the economically optimal size for firms. B. The Internet increases the transaction costs. C. The Internet allows for innovative services but at a relatively higher cost. D. The Internet enables smaller firms in emerging economies to sell into a global market. E. The Internet increases the economies of scale from vertical integration.
The Internet enables smaller firms in emerging economies to sell into a global market
_____ has long been considered the most effective nontariff barrier to the Japanese market. A. The Japanese population B. The Japanese distribution structure C. Japanese culture D. The Japanese import and export procedure E. Intense competition in Japan
The Japanese distribution structure
Which of the following statements is true of the Japanese market? A. The costs of Japanese consumer goods are among the lowest in the world. B. Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network. C. The Japanese distribution structure supports long term dealer-supplier relationships. D. Japanese law favors the establishment of large retail stores. E. Japanese consumers favor price over personal service.
The Japanese distribution structure supports long-term dealer-supplier relationships
Which of the following is true of the standard of living of the eight most populous countries of the Asia/Pacific region? A. The Japanese rail system is the most underdeveloped in the world. B. In the Philippines, most people travel by train. C. As a result of communism, China and Vietnam place low emphasis on health. D. The Japanese healthcare system produces the longest lifespans in the world. E. Consumption patterns indicate that the Chinese place much lower emphasis on education, compared to Indians.
The Japanese healthcare system produces the longest lifespans in the world
Negotiators from this region in China have been the closest to foreign influences, which has yielded their special forms of entrepreneurship and spontaneity. They are excellent traders and particularly interested in making short-term gains. Identify the region. A. Taiwan B. Yangtze River Delta C. Beijing D. Shanghai E. The Pearl River Delta
The Pearl River Delta
_____ contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry. A. Northeast China B. The Yellow River Delta C. The Yangtze River Delta D. The Pearl River Delta E. Southwest China
The Pearl River Delta
Which of the following countries is a part of the free trade area known as CFTA? A. France B. Uruguay C. The United States D. Argentina E. Brazil
The United States
Which of the following was the greatest hindrance to the development of software innovations appropriate for world markets in Japan? A. The deeply-rooted bureaucratic structure. B. The rise in global oil prices. C. The complex Japanese language. D. The growing fiscal deficit. E. The burgeoning population.
The complex Japanese language
Which of the following is the primary reason behind the inaccessibility of most of the 1.3 billion potential consumers? A. Most of them have little disposable income. B. The distribution network is poor or absent. C. They are mostly Communist party members who avoid purchasing imported goods. D. They are restricted to settlement zones where marketing is prohibited. E. They are unfamiliar with the English language.
The distribution network is poor or absent
Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century? A. The transition from socialist to market-driven economies. B. Liberalization of trade and investment policies in developing countries. C. The transfer of public-sector enterprises to the private sector. D. The rapid development of regional market alliances. E. The expansion of military interventions around the world.
The expansion of military interventions around the world
Which of the following statements is true regarding an import-oriented distribution structure? A. The importer-wholesaler traditionally performs most of the marketing functions. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. Several independent agencies providing functions such as advertising, marketing research, financing are a part of this distribution structure. D. The idea of a channel as a chain of intermediaries performing specific activities is common. E. This distribution system is national in scope.
The importer-wholesaler traditionally performs most of the marketing functions
Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one? A. Japan's trade policies with the United States. B. Japan's refusal to join Asian trade blocs. C. The powerful influence of the royalty in political issues. D. The long entrenched Liberal Democratic political party. E. The splintering of most of Japan's right-wing political parties.
The long entrenched Liberal Democratic political party
Which of the following statements is true of a traditional distribution structure? A. The distribution system is national in scope. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. D. Independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.
The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers
Which of the following is true of the marketing opportunities in Greater China? A. It has an efficient distribution and channel system and so companies can save on infrastructure building. B. There are extreme differences in economic well-being, cultures, and political structures. C. Unlike the United States, luxury cars sell better in rural areas of the west. D. The economic system of China is based entirely on capitalist principles. E. Selling consumer products in China requires little cultural nuance.
There are extreme differences in economic well-being, cultures, and political structures``
Which of the following statements is true regarding MDCs (more-developed countries)? A. These countries are just entering world trade. B. Majority of its population stay in rural areas. C. These countries have high per capita incomes. D. These countries have little world trade involvement. E. These countries have mainly agrarian economies
These countries have high per capita incomes
Which of the following is true of foreign sales corporations? A. They are commonly called piggybackers. B. They can only be related to a manufacturing parent and not an independent broker. C. They virtually control distribution through all levels of channels in Japan. D. They accumulate, transport, and distribute goods from many countries. E. They can function as a principal or a commissioned agent.
They can function as a principal or a commissioned agent
What is common among the Asian countries Hong Kong, South Korea, Singapore, and Taiwan? A. They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries. B. They have a middle class numbering some 250 million, about the population of the United States. C. The exports in these countries are growing at a rate of 50 percent annually. D. They have faced a serious disadvantage in the information age due to their complex languages. E. They all have the custom of "baksheesh", a deeply ingrained system of bribery.
They were among the first countries in Asia to move from a status of developing countries to newly industrialized countries
Which of the following statements is true regarding agent middlemen? A. They take title to the merchandise. B. They work on commission and arrange for sales in the foreign country. C. Manufacturers cannot control them as they control merchant middlemen. D. They do not represent the best interests of the manufacturer. E. They assume trading risks.
They work on commission and arrange for sales in the foreign country
_____ is China's third largest industrial city after Shanghai and Beijing. A. Wuhan B. Chengdu C. Qingdao D. Tianjin E. Kaohsiung
Tianjin
Which of the following is one of the primary targets of ASEAN Vision 2020? A. To implement fully and as rapidly as possible the ASEAN Free Trade Area. B. To form the ASEAN+3 to deal with trade and monetary issues facing Asia. C. To shift Asian economies from manufacturing based to commodity based. D. To aid Japan's emergence as the major provider of technology and capital necessary to develop new industries. E. To prevent the further privatization of state owned industries.
To implement fully and as rapidly as possible the ASEAN Free Trade Area
Which of the following was a goal of the Export Trading Company Act? A. To allow U.S. companies to bypass tax laws with respect to international trading. B. To remove antitrust disincentives to export activities. C. To bypass trade barriers in foreign countries. D. To earn the highest possible profits in foreign countries. E. To combine export shipments within single containers.
To remove antitrust disincentives to export activities
Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city. A. Tokyo-Nagoya-Osaka B. Komaki-Tokoname-Kariya C. Nagoya-Handa-Seto D. Nishio-Okazaki-Inazawa E. Inuyama-Nisshin-Takahama
Tokyo-Nagoya-Osaka
Which of the following statements about advertising laws around the world is correct? A. Advertising of pharmaceuticals is unrestricted in most countries. B. Toy, tobacco, and liquor advertising is restricted in numerous countries. C. Advertising on television is unregulated in most countries. D. The Internet is the only medium where no restrictions exist in any country. E. Television ads are not taxed by most governments around the world.
Toy, tobacco, and liquor advertising is restricted in numerous countries
Which of the following most accurately represent the "three direct links" leading to the establishment of One China? A. Transportation, trade, and communications. B. Culture, language, and religion. C. History, language, and transportation. D. Federal bodies, education, and trade. E. Technology, natural resources, and people.
Transportation, trade, and communications
Which of the following treaties provided the legal basis for Mercosur? A. Treaty of Accession 2003 B. Treaty of Asunción C. Treaty of Easton D. Treaty of Versailles E. Treaty of Montevideo
Treaty of Asuncion
During the early growth of many countries, the first large open market was _____. A. China B. China C. Australia D. Germany E. India
United States
At the most general level, the _____ represents the most important and comprehensive trade agreement in history. A. NAFTA B. Amsterdam Treaty C. MERCOSUR D. WTO E. ASEAN
WTO
Which of the following is a cultural hurdle in the path of China becoming a vast market in the long run? A. Caste system B. Xenophobia C. Excessive focus on human rights D. Excessive bureaucracy E. Excessive spending
Xenophobia
_____ is known as China's Silicon Valley. A. Liaoning B. Zhongguancun C. Jilin D. Guangzhou E. Heilongjiang
Zhongguancun
CARICOM established the CSME (CARICOM Single Market and Economy) with the goal of: A. establishing central institutions similar to those of the European Union institutions. B. forming a political union. C. a common currency for all members. D. increasing nontariff barriers. E. implementing uniform customs procedures and regulations.
a common currency for all members
Which of the following is the weakest of political unions that is mostly based on economic history and a sense of tradition? A. A conglomerate B. A community C. A commonwealth D. A proprietary colony E. A trade association
a commonwealth
Due to differences in culture in different markets, standardized products that are marketed globally will require: A. a different advertising appeal. B. a different primary function. C. consistent promotional messages. D. a standardized marketing strategy. E. standardized secondary attributes.
a different advertising appeal
With the expansion of the European Union, existing members fear: A. retaliation against members by the Soviet Union. B. a flood of cheap labor into their countries. C. OPEC will cut off supplies to countries supporting the expansion of the European Union. D. new political leaders who will overwhelm the existing leadership. E. the dilution of the euro.
a flood of cheap labor into their countries
Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share _____ and are commonly aware of being European A. a common language B. a long-established Christian heritage C. a dislike for foreigners D. a tradition of monarchy and feudalism E. a democratic background and heritage
a long-established Christian heritage
Essentially, a free trade area (FTA) provides its members with: A. political union B. a mass market without barriers among partner countries. C. a regional cooperation for social development. D. customs unionization. E. an international market place without customs duties.
a mass market without barriers among partner countries
One of the first factors that gave the European Union an edge over others in the process of becoming a common market was: A. a similarity in agriculture and monetary policy. B. a similarity in political systems. C. a similarity in languages. D. a well-developed transportation network. E. a common currency.
a well-developed transportation network
Most analysts predict that China would see an 8 to 10 percent average GNP growth in the next 10 to 15 years. All of this growth is primarily dependent on China's: A. ability to deregulate industry. B. ability to prevent the privatization of its state owned enterprises. C. preparedness to resist the capitalist wave. D. ability to put embargoes on foreign investment. E. ability to uphold its traditional legal system.
ability to deregulate industry
Of all the elements of the marketing mix, decisions involving which of the following are those most often affected by cultural differences among country markets? A. Price of the product B. Benefits offered by the product. C. Services offered along with the product. D. The place of offering the product. E. Advertisement of the product.
advertisement of the product
Of all the elements of the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets. A. direct selling B. public relations C. trade shows D. advertising E. sales promotion
advertising
For most companies, which of the following are the major components in the marketing communications mix? A. Public relations and advertising. B. Direct selling and trade shows. C. Advertising and personal selling. D. Public relations and sales promotions. E. Direct selling and sales promotions.
advertising and personal selling
________ in countries can distort media choice by changing the cost ratios of various media. A. Advertising taxation B. Political structure C. Power distance D. Cultural traits E. Technological development
advertising taxation
The Commonwealth of Independent States is: A. a political alliance with a central government. B. an economic and political alliance with open borders and no central government. C. an economic and political alliance with closed borders and a federal government. D. a federation of many states. E. a supranational organization similar to the old European community.
an economic and political alliance with open borders and no central government
James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives? A. A manufacturer's export agent. B. An export merchant. C. A trade representative. D. An export management company. E. A complementary marketer.
an export management company
The formation of multinational market groups has resulted in: A. increased difficulties in trade. B. an increased regulation of business activities. C. business activities losing management control. D. an increase in tariffs. E. an increase in border controls.
an increased regulation of business activities
Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have: A. attracted both trade and foreign direct investment. B. overcome environmental damages caused by lack of development. C. reduced population pressures through labor outsourcing. D. obtained significant amount of loans from World Bank. E. taken measures to protect their cultures and traditions.
attracted both trade and foreign direct investment
Which of the following factors affects the choice of distribution channels? A. Distance from manufacturer. B. Language spoken in the target market. C. Available distribution intermediaries. D. Consumer literacy levels. E. Country's per capita income.
available distribution intermediaries
Alexia is geographically large and represents a sizable market for a wide range of products. It has a potential for significant growth. It is considered as the regional economic driver. Based on this information, Alexia can be classified as a(n) _____. A. contestable market B. big emerging market C. two-sided market D. captive market E. niche market
big emerging market
Markets that are geographically large, have strong growth rates, are regional economic drivers and represent sizable markets for a wide range of products are known as _____. A. captive markets B. big emerging markets C. niche markets D. contestable markets E. two-sided markets
big emerging markets
If a market is characterized as being geographically large, has significant population, is a regional economic driver, and has undertaken significant programs of economic reform, the market is classified as a(n) _____. A. two-sided market B. contestable market C. captive market D. niche market E. big emerging market
big-emerging market
C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. They refer to these consumers, concentrated in the LDCs and LLDCs, as _____ markets. A. subsistence B. third-world C. underdeveloped D. bottom-of-the-pyramid E. peripheral
bottom-of-the-pyramid
All of the following are specific objectives of sales promotion EXCEPT: A. immediate purchase. B. consumer introduction to the store. C. gaining retail point-of-purchase displays. D. building brand loyalty. E. encouraging stores to stock the product.
building brand loyalty
Which of the following is most closely associated with negotiators from the Beijing area? A. Traditional thought pattern B. Bureaucratic sloth C. Forthrightness D. Shrewdness E. Aggression
bureaucratic sloth
Which of the following is one of the highest costs of doing business in China? A. Money required for the transportation of goods. B. Money required for obtaining appropriate permits. C. Cost of local advertising. D. Capital required to maintain effective distribution. E. Cost of customizing products for the Chinese market.
capital required to maintain effective distribution
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward adopting aspects of _____. A. capitalism B. socialism C. federalism D. democracy E. a customs union
capitalism
Which of the following is a critical element associated with using a particular type of middleman? A. Knowledge of the culture of the target market. B. Number of employees. C. Mode of transportation for moving goods. D. Influence over the target market. E. Cash-flow patterns.
cash-flow patterns
The emergence of pan-European communications media will most likely cause companies to: A. opt for localized promotional campaigns. B. opt for greater customization of promotional efforts. C. promote their products only in English. D. use only Internet as their message channel. E. choose more standardized promotional efforts.
choose more standardized promotional efforts
Estimating market potential in less-developed countries involves additional challenges, but most of the difficulty arises from the _____. A. coexistence of three distinct kinds of markets in each country B. dependence of the markets on the industrialized sectors C. lower wage rates of the workforce D. high fluctuation in the currency rate E. higher concentration of population residing in the urban areas
coexistence of three distinct kinds of markets in each country
According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage. A. mass production B. commercial-transition C. self-sufficient D. surplus commodity product E. small scale
commercial-transition
Which of these levels of economic integration lacks only political unity to become a political union? A. Common market B. Free trade area C. Regional cooperation group D. Customs union E. Trade friendly zone
common market
A _____ of nations is a voluntary organization providing for the loosest possible relationship that can be classified as economic integration. A. conglomerate B. community C. commonwealth D. proprietary colony E. trade association
commonwealth
When the Soviet Union dissolved, the _____ emerged and had 12 members that agreed to a loose economic and political alliance with open borders but no central government. A. European Trade Pact B. Commonwealth of Independent States C. Eurasian Alliance D. Russian Confederation E. Post-Soviet Bloc
commonwealth of Independent States
In the context of integrated marketing communications, in many markets, the availability of appropriate _____ to customers can determine entry decisions. A.demonstrations B. cultural appeal C. technological aid D. services E. communication channels
communication channels
Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is: A. skimming. B. backhauling. C. complementary marketing. D. export marketing. E. demand shifting.
complementary marketign
Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? A. Price skimming. B. Using the services of a trading company. C. Establishing a retail store. D. Using the services of an export management company. E. Complementary marketing.
complementary marketing
The transitional sector differs from the modern urban sector in that the transitional sector: A. is an exclusively agriculture-oriented sector. B. consists of population that works in the country side. C. consists of an expanding Westernized middle class. D. represents the high-income urban slums. E. consists of population that moves from the country to the large cities.
consists of population that moves from the country to the large cities.
Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement
continuity
Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement
continuity
Which of the following is one of the six Cs of distribution channel strategy? A. Communication B. Continuity C. Capacity D. Commission E. Contribution
continuity
_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest. A. Trade shows B. Cent-offs C. Road shows D. Sweepstakes E. Corporate sponsorships
corporate sponsorships
With regard to consumer products, which of the following is the major limitation of the Internet? A. Knowledge of how to use the Internet. B. Coverage of the Internet. C. Government regulations on the use of the Internet. D. Difficulty in tracking the effectiveness of advertisements on the Internet. E. Cost of using the Internet.
coverage of the internet
Social media such as blogs and social networking permits consumers to: A. obtain discounts on the brands they endorse on their blogs. B. obtain free Internet access that is supported by brand ads. C. create content about brands whether marketers like it or not. D. contact the manufacturer directly about warranty issues. E. become authorized virtual brand agents for the product manufacturers.
create content about brands whether marketers like it or not
With respect to advertising, _____ is especially important when a budget is small or where there are severe production limitations. A. class distinction B. politicization C. technology D. creativity E. following a formula
creativity
In the context of international advertising, global mass media advertising is a powerful tool for _____. A. relationship orientation B. long-term performance C. product stability D. emotional appeal E. cultural change
cultural change
Many international trade experts have marveled at how members of the European Union have overcome _____, _____, and _____ differences. A. marketing; management; promotional B. energy; political; geographical C. cultural; legal; social D. time zone; coastal; religious E. language; educational; technological
cultural; legal; social
A _____ is the intermediate step in the transition from a free trade area to a common market. A. political union B. cartel C. regional cooperation for development (RCD) D. customs union E. monopsony
customs union
The _____ has reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the group. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)
customs union
A _____ agreement eliminates all tariffs and other restrictions on internal trade, adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations. A. political union B. Paris C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)
customs union? common market?
In the context of international advertising, it has been observed that advertising expenditures are generally _____. A. linear B. supplemental C. mutually reinforcing D. cyclical E. constrained
cyclical
_____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement. A. Discrimination B. Endorsement C. Deception D. Plagiarism E. Fear mongering
deception
One of the challenges facing the European Union in the next 50 years is: A. deciding on how to limit the political aspects of union. B. diluting the value of the euro. C. strengthening ties with the United Nations. D. deciding on how to control the individualistic European population. E. how to control rapid expansion.
deciding on how to limit the political aspects of union
During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the information source? A. Selecting a message B. Encoding C. Selecting a message channel D. Decoding E. Identifying the sources of noise
decoding
In the international communications process, _____ is defined as the interpretation by the receiver of the symbolism transmitted from the information source. A. encoding B. message selection C. decoding D. message channel selection E. feedback evaluation
decoding
The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could: A. defend their currencies against future attack. B. improve the multilateral trade. C. keep inflation under check. D. acquire nuclear technology. E. improve agricultural production.
defend their currencies against future attack
Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers. A. developing messages B. selecting effective media C. executing the campaign D. composing and securing a budget E. specifying the goals of the communication
developing messages
In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling. A. direct B. parallel C. dual D. mass E. targeted
direct
_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. A. Direct marketing B. A big wholesale store C. Internet selling D. A discount house E. Television advertising
direct marketing
In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment? A. Export management companies. B. Trading companies. C. Export associations. D. Direct sales force. E. Complementary marketers.
direct sales force
Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. Complementary marketers. B. Direct sales force. C. Export associations. D. Trading companies. E. Export management companies.
direct sales force
Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system? A. Direct sales through catalogs. B. Large wholesale stores. C. Street corner kiosks. D. Internet shopping. E. Television advertising.
direct sales through catalogs
The European Community uses several forms of legal instruments. A. Regulations B. Decisions C. Codes D. Directives E. Specifications
directives
Economic planners are most likely to be least concerned with the problems related to _____. A. production B. finance C. expenditure D. distribution E. investment
distribution
Home-country middlemen are also known as _____ middlemen. A. area B. local C. merchant D. domestic E. regional
domestic
The adoption of the euro has facilitated which of the following? A. Increased complexity of online marketing. B. An increase in parallel imports. C. An increase in unhealthy and unfair competition. D. Easily recognizable price differentials. E. Increased business costs.
easily recognizable price differentials
The level of market development roughly parallels the stages of _____. A. economic sustainability B. economic duress C. economic repression D. economic equilibrium E. economic development
economic development
Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of their drugs in India. The saffron trident, a religious symbol in India was meant to indicate the three levels of efficacy of the drug, but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process? A. Encoding B. Decoding C. Media channel selection D. Message transmission E. Information source selection
encoding
In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step. A. feedback B. decoding C. message channel selection D. encoding E. message selection
encoding
In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver. A. transmitting B. scrambling C. standardizing D. decoding E. encoding
encoding
Janet works for a media agency based in Japan. Janet is helping the IMC manager of Siljure, a French cosmetics company, with the design and language to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the IMC process is Janet helping Siljure with? A. Encoding of the message. B. Choosing an appropriate channel for the message. C. Decoding of the message. D. Providing feedback from customers. E. Reducing noise from competing ad campaigns.
encoding of the message
Nations with complementary economic bases are least likely to: A. develop a distinctive monetary system. B. outweigh individual differences with the total benefit of economic integration. C. experience internal economic development. D. achieve enlargement of market opportunities through preferential tariff treatment. E. encounter frictions in the development and operation of a common market unit.
encounter frictions in the development and operation of a common market unit
Yugoslavia has been facing internal strife due to: A. land issues. B. class war. C. high inflation. D. economic recession. E. ethnic divisions.
ethnic divisions
When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____. A. demand creation B. market information analysis C. physical distribution D. exchange E. market and product planning, development
exchange
A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products. A. export management companies B. trading companies C. import associations D. global retailers E. complementary marketers
export management companies
Which of the following is a type of domestic middleman? A. Sole proprietors. B. Export Management Companies. C. Foreign distributors. D. Lessors. E. Joint ventures.
export management companies
A commonwealth of nations is an organization providing for the strongest possible economic integration relationship. True False
false
A customs union is the most fully integrated form of regional cooperation. True False
false
A distinguishing characteristic of the Japanese distribution channel system is that it is controlled by a few small retailers found in the country. True False
false
A majority of the population of less developed countries can be reached readily through the traditional mass medium of advertising. True False
false
A physical distribution system involves only the physical movement of goods. True False
false
A proper encoding system allows a company to correct errors before substantial damage occurs. True False
false
APEC is a body formed by the major governments of the Asian countries with the primary purpose of protecting their local industries against the market domination by their western counterparts. True False
false
According to C. K. Prahalad, the global market consisting of the 4 billion people across the globe with annual incomes of less than $1,200 is termed subsistence market. True False
false
According to the UN classification, industrially developing countries just entering world trade with relatively low per capita incomes are referred to as least-developed countries. True False
false
As they were closest to foreign influences, negotiators in Taiwan are considered to be the most liberal. True False
false
At present low value-added manufacturing in textiles and heavy equipment manufacturing industries account for the vast majority of Shanghai's industrial employment. True False
false
Brazil is a fully industrialized country. True False
false
China is now the biggest market for personal computers. True False
false
Considering the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, Brazil falls under the group of more-developed countries (MDCs). True False
false
Contests, sweepstakes, sponsorship of special events such as concerts are techniques used for maintaining and improving public relations. True False
false
Domestic middlemen offer many advantages for companies with large international sales volume. True False
false
Due to their inherent entertainment value, satellite TV and the Internet have become major communications media in almost all nations. True False
false
Economic growth is measured solely in economic goals. True False
false
Europe and Asia had a trade group that emerged and persisted since the dissolution of the Soviet Union called the Newly Independent States. True False
false
Export management companies work under their own names. True False
false
Feedback channels must be carefully selected if an encoded message is to reach the consumer. True False
false
For most companies, trade shows and direct selling are the major components in the marketing communications mix. True False
false
High transaction costs associated with the use of the Internet prevents smaller firms in emerging countries from selling into a global market. True False
false
Historically, standards have been used to effectively increase market access. True False
false
In a traditional distribution structure, distribution systems are national rather than local in scope. True False
false
In an import-oriented distribution structure, supply often exceeds demand. True False
false
In recent years, the United States has emerged as Japan's single largest trading partner, surpassing the Southeast Asian countries. True False
false
In static economies, consumption patterns change rapidly. True False
false
In the U.S., if a middleman is terminated, the company is required to pay one percent of the middleman's average annual compensation, multiplied by the number of years the middleman served, as a final settlement. True False
false
In the context of distribution patterns, wholesaling shows a greater diversity in its structure than does retailing. True False
false
In the context of distribution structures, one of Walmart's strengths is its ability to influence foreign governments. True False
false
In the context of international advertising, advertisers prefer global television (satellite broadcasts) due to the availability of accurate market data in most countries. True False
false
In the context of international advertising, an advertiser must consider local variations when choosing an appropriate medium. True False
false
In the context of the different kinds of middlemen, in 2003, the WTO ruled export management companies to be in violation of international trade rules. True False
false
In the context of the distribution structure in Japan, it has been observed that Japanese consumers favor cheaper prices over personal service. True False
false
In the year 2009, Germany became the world's biggest exporter ahead of China. True False
false
Industrial advertisers rarely use direct mail for advertising. True False
false
International advertisers use foreign national consumer magazines extensively because they have dependable circulation figures. True False
false
Legal advice is not necessary when entering distribution contracts with middlemen. True False
false
Merchant middlemen tend to be more controllable than agent middlemen because they take title to manufacturers' goods. True False
false
Mercosur is a free trade group formed by the United States of America. True False
false
Mercosur is the largest common-market agreement in the Americas. True False
false
Nations with complementary economic bases are most likely to encounter frictions in the development and operation of a common market unit. True False
false
One of Japan's advantages over other countries is its language; the syntax of the Japanese language is similar to that of certain programming languages. True False
false
One of the chief features of Maastricht Treaty (1992) was that 12 members of the European community agreed to an economic but not political integration. True False
false
Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving for other countries or pulling their money back home. True False
false
Sales promotions are long-term IMC efforts directed to the consumer or retailer. True False
false
Television is an advertising medium where there are no restrictions in most countries. True False
false
The Arab Gulf states, Egypt, and Morocco have worked out an agreement on the Gulf Arabian Free Trade Area (GAFTA). True False
false
The Baltic States had a history of a free trade regime. True False
false
The Chinese central government spends almost 50 percent of its budget for the rural poor who amount to almost three-fourths of the Chinese population. True False
false
The Commonwealth of Independent States (CIS) was formed by Britain because it did not want to join the European Economic Community (EEC). True False
false
The Council of ministers of the European Union can enact into law all proposals by unanimous vote. True False
false
The European Union is a good example of a free trade area. True False
false
The European Union is currently an officially established political union. True False
false
The Four Asian Tigers are: China, Thailand, India, and North Korea. True False
false
The Hong Kong SAR government stresses the predominant role of the public sector over the private sector. True False
false
The Japanese distribution structure is similar to the one found in the U.S. or in Europe. True False
false
The Mercosur envisioned central institutions similar to those of the European Union institutions. True False
false
The PNTR status given to China contributed much toward increasing the import barriers on American products and services. True False
false
The United States is now Japan's most important trading partner, even ahead China. True False
false
The United States-Canada Free Trade Area (CFTA) was a customs union like the European Community. True False
false
The decisions of the European Court of Justice can be appealed in national courts. True False
false
The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer. True False
false
The distribution process includes promotion of goods and services by sellers and resellers. True False
false
The importance of political unity to fully achieve all the benefits of economic integration has driven European countries to form the World Trade organization (WTO). True False
false
The level of political stability in a country is the single most important environmental element to which the foreign marketer must adjust the marketing task. True False
false
The marketing process substage in the United States economy from 1950 to the present is mass production. True False
false
The more developed an economy, the lesser the variety of marketing functions demanded. True False
false
The most basic level of economic integration and cooperation is geographical local federation (GLF). True False
false
The newly industrialized countries have per capita incomes lower than LDCs or MDCs. True False
false
The sector that was hit the hardest during the Japanese recession was the real estate sector. True False
false
The term "The Greater China" refers to the information technology (IT) corridor in north China. True False
false
Tianjin is China's largest industrial city. True False
false
Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process of communication are called feedback. True False
false
Uruguay is a member of NAFTA. True False
false
Using foreign-country middlemen moves the manufacturer away from the market and the company becomes less involved with problems of language, physical distribution, communications, and financing. True False
false
When a marketing executive advertises his product in a newspaper, the newspaper acts as a feedback channel. True False
false
When a message from the source is converted into effective symbolism for transmission to a receiver, the message is said to have been decoded. True False
false
When the marketing process in a country is in the commercial transition substage, the only marketing function performed is physical distribution. True False
false
When the only marketing functions performed are demand creation and physical distribution, the marketing process is said to be in the mass distribution substage. True False
false
The institutions of the European Union form a _____ pattern. A. bilateral B. unitary C. federal D. provincial E. autonomous
federal
Which of the following steps of a communications process is important as a check on the effectiveness of the other steps? A. Selecting a proper message. B. Encoding the message. C. Selecting an appropriate channel of communication. D. Decoding the message. E. Feedback.
feedback
One of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that: A. consumers in most countries rarely read magazines. B. few magazines provide reliable circulation data. C. they publish content only in English. D. subscription to magazines has reduced as the Internet gains popularity. E. advertising in magazines is costly as compared to other advertising media.
few magazines provide reliable circulation data
The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____. A. wholesaler B. agent middlemen C. merchant middlemen D. retailer E. final consumer
final consumer
Half of Shanghai's GDP is derived from its _____. A. financial services industries B. steel industries C. electronic products D. shipping sector E. software industries
financial services industries
More household money goes for _____ in emerging markets than in developed markets. A. housing B. transportation C. food D. leisure E. education
food
A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. A. Webb-Pomerene export association B. manufacturer's export agent C. export management company D. complementary marketer E. foreign sales corporation
foreign sales corporation
In the context of types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union. A. foreign sales corporations B. direct marketing partnerships C. trading companies D. export promotion companies E. Webb-Pomerene export associations
foreign sales corporations
Government bureaucracy, corruption, and organized crime are common problems found in _____. A. Latin America B. The United States C. China D. former Soviet Union E. Japan
former Soviet Union
The ties that bind members of the Commonwealth of Independent States stem mainly from their: A. agreement to the European Trade Pact. B. former Soviet membership. C. UN membership. D. affiliation to the Eurasian Alliance. E. WTO membership.
former Soviet membership
A _____ is an agreement between two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries while members maintain individual tariff schedules for external countries. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)
free trade area (FTA)
As George Platt examines markets that might match his company's investment requirements, he is particularly struck by the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together. Which of the following critical factors for ensuring an effective economic union is Mr. Platt most likely examining when reviewing transportation networks? A. Cultural factors B. Trade factors C. Political factors D. Geographic proximity E. Economic factors
geographic proximity
Which of the following is one of the reasons that has hampered the conferences held by the United Nations Economic Commission for Africa to bring about holistic integration? A. Governmental inexperience. B. Depletion of natural resources. C. Excessive influx of products. D. Lack of beneficial funds. E. Excess of cheap labor.
governmental inexperience
One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____. A. do not maintain sufficient inventory to serve customers B. lack product knowledge resulting in low sales volume C. have little loyalty to their vendors D. tend to slow down distribution to extract higher commissions E. do not have sufficient knowledge of the target market
have little loyalty to their vendors
Newly industrialized countries (NICs) differ from less-developed countries in that NICs: A. include Canada, the United States and Germany. B. are similar to more-developed countries. C. have per capita incomes that are lower than other developing countries. D. have moved away from restrictive trade practices and instituted significant free market reforms. E. have shown slow industrialization and expansion of targeted industries.
have moved away from restrictive trade practices and instituted significant free market reforms
Dynamic economies differ from static economies in that dynamic economies: A. need not match marketing efforts with the market needs and wants. B. have rapidly changing consumption patterns. C. have rigid consumption patterns. D. define marketing as typically nothing more than a supply effort. E. do not require the marketer to be prepared for economic shifts and emerging markets.
have rapidly changing consumption patterns
Which of the following distribution structures is also known as a traditional distribution structure? A. Export-oriented B. Import-oriented C. Manufacturer-oriented D. Service-oriented E. Customer-oriented
import-oriented
The only way to avoid linguistic problems in advertising communication is by: A. creating an entirely new advertisement for the new market. B. using only English in all media promotions. C. developing a new version of the product for the new market. D. in-country testing with the target consumer group. E. using facial expressions and physical gestures in the advertisement.
in-country testing with the target consumer group
In the international communications process, an international marketing executive with a product message to communicate acts as a(n) _____. A. decoder B. information source C. receiver D. encoder E. noise source
information source
Meta Garbon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors, and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products and the promotional campaign was a failure. During which of the following steps of the IMC process did Meta Garbon go wrong? A.Information source selection. B. Selection of message channel. C. Encoding. D. Decoding. E. Noise cancellation.
information source selection
Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____. A. environmental resources B. inventory C. infrastructure D. factors of production E. logistics
infrastructure
Which of the following are especially vulnerable as EU member states decide which area of regulation should apply to these services? A. Newspaper advertising. B. Radio advertising. C. Outdoor services. D. Personal selling. E. Internet services.
internet services
NAFTA differs from Mercosur in that NAFTA: A. was provided legal basis by the Treaty of Asunción. B. is the second-largest common-market agreement in the Americas after Mercosur. C. includes Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay. D. is a comprehensive trade agreement that addresses and improves all aspects of doing business within North America. E. aimed at establishing a common currency for its Latin American members. NAFTA is a comprehensive trade agreement that addresses, and in most cases improves, all aspects of doing business within North America. Mercosur (including Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay) is the second-largest common-market agreement in the Americas after NAFTA.
is a comprehensive trade agreement that addresses and improves all aspects of doing business within North America
South Africa is most likely to experience rapid economic growth in as few as 10 years owing to: A. the beginning of apartheid. B. its recent consumerist trends. C. its industrial base. D. its outsourcing ability. E. the coupling of small African markets with it.
its industrial base
The most important advantage of Northeast China that mainly contributed toward its being the industrial and technological center of the country in the 1970s and 1980s is: A. its juxtaposition with China's most important industrial neighbors. B. the lack of economic diversity in this area. C. the existence of oil fields these areas. D. that it contains Hong Kong, Macau, Guangzhou, and Shenzhen. E. that it has the authority to impose embargoes upon its trading partners.
its juxtaposition with China's most important industrial neighbors
_____ is one of the major barriers to effective communication through advertising. A. Language B. Jingoism C. Technology D. Religion E. Power structure
language
Multinational market groups form: A. a large organization that promotes harmony by mutual agreement to a common peace treaty. B. large markets that provide potentially significant opportunities for international business. C. a conglomerate that seeks to undertake foreign trading ventures as one company. D. a non-profit entity that works together to help the development of under-developed countries. E. regional trading blocs without trade restrictions internally but with borders protected from outsiders.
large markets that provide potentially significant opportunities for international business
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations and extremely low per capita income levels falls under the category of _____. A. first world countries B. least-developed countries C. less-developed countries D. newly industrialized countries E. big emerging markets
least-developed countries
Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the _____ of television commercials permitted when their programs are classified as advertisements. A.length and number B. religious content C. subliminal messaging D. superlative description E. ethnic derision
length and number
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, _____ consist of industrially developing countries just entering world trade with relatively low per capita income. A. first world countries B. least-developed countries C. less-developed countries D. newly industrialized countries E. more-developed countries
less-developed countries
Which of the following characterizes the business philosophy of the Japanese distribution channels? A. Loyalty B. Direct sales C. Fast delivery D. Variety E. Price competition
loyalty
The World Trade Organization is wholly dedicated to ____. A. the expansion of capitalism B. the elimination of language barriers in trade C. free and open national borders D. the enforcement of international anti-bribery laws E. making trade among nations more efficient
making trade among nations more efficient
A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis. A. manufacturers' retail store B. trading company C. global retailer D. manufacturer's export agent E. complementary marketer
manufacturer's export agent
A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets. A. complementary marketer B. export management company C. Webb-Pomerene export association D. global retailer E. manufacturer's export agent
manufacturer's export agent
_____ is an economy's arbitrator between productive capacity and consumer demand. A. Warehousing B. Marketing C. Convergence D. Procurement E. Outsourcing
marketing
Which of the following substages best characterizes the United States today with respect to the evolution of the marketing process? A. Mass production B. Commercial-transition C. Self-sufficiency D. Surplus commodity product E. Mass distribution
mass distribution
Identify the substage in the evolution of the marketing process, when the only marketing functions performed are demand creation and physical distribution. A. Mass production B. Global distribution C. Self-sufficient D. Surplus commodity product E. Small scale
mass production
The marketing process in the U.S between 1885 to 1914 mainly focused on _____. A. mass distribution B. self-sufficiency C. mass production D. surplus commodity product E. commercial-transition
mass production
Using newspapers or magazine ads as a channel of communication when the majority of the intended users are illiterate, is an example of ineffective _____ in the communications process. A. feedback B. media channel selection C. noise D. market selection E. message selection
media channel selection
Which of the following are frequently criticized for not representing the best interests of a manufacturer? A. Global wholesalers B. Trading companies C. Consumers D. Merchant middlemen E. Brokers
merchant middlemen
_____ take title to manufacturers' goods and assume the trading risks. A. Merchant middlemen B. Brokers C. Buying offices D. Export agent E. Agent middlemen
merchant middlemen
In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a _____. A. decoder B. message source C. receiver D. message channel E. noise
message channel
With reference to the communication process in advertising, using the Internet as a medium when only a small percentage of an intended market has access to it, is an example of an error related to: A. feedback. B. decoding. C. message channel selection. D. encoding. E. message selection.
message channel selection
According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, which category does an industrialized country with high per capita income fall under? A. Less-developed countries. B. Least-developed countries. C. More-developed countries. D. Newly industrialized countries E. Pre emerging markets.
more-developed countries
Canada is classified under the category of _____. A. third world countries B. least-developed countries C. more-developed countries D. newly industrialized countries E. pre-emerging countries
more-developed countries
Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because: A. it will improve the image of its goods. B. Mexico has lower wages than Sri Lanka. C. Mexico has better infrastructure than Sri Lanka. D. moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka. E. workers in Mexico are more skilled than those in Sri Lanka.
moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka
Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called: A. multilateral economic associations. B. cartels. C. multinational market regions. D. trade associations. E. political and cultural associations.
multinational market regions
Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing postcommunist market reforms. This implies that: A. the region is against establishing free markets. B. new business opportunities emerge in this region. C. all of the eastern European countries can be viewed as one entity. D. all of these countries have made the same progress. E. all of these countries have had the same success in economic reform and growth.
new business opportunities emerge in this region
Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are _____ countries. A. least-developed B. kinetically-developing C. parallel-developed D. newly industrialized E. rapid-growth
newly-industrialized
The United Nations' classification of stages of economic development has been criticized because it: A. no longer seems relevant in the rapidly industrializing world. B. does not take into consideration the level of political stability in a country. C. does not take into consideration the per capita income level of a country. D. only focuses on the literacy level in a country. E. does not take into consideration the level of industrialization of a country.
no longer seems relevant in the rapidly industrializing world
Which of the following elements of the international communications process comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of the communication? A. Selecting a message source B. Encoding C. Selecting a message channel D. Decoding E. Noise
noise
In the 1970s, Frank Gibney had called Japan "The Fragile Superpower", which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of: A. social loafing. B. compensating errors. C. being penny-wise and pound-foolish. D. herd behavior. E. one-party sickness.
one-party sickness
Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in? A. Black marketing. B. Parallel importing. C. Backwashing. D. Industrial piracy. E. Smuggling.
parallel importing
While developing an international advertisement campaign, which of the following is the first step of the process? A. Compose and secure a budget based on what is required to meet goals. B. Specify the goals of the communication. C. Select effective media. D. Execute the campaign. E. Perform marketing research.
perform marketing research
Complementary marketing is commonly known as _____. A. backhauling B. demand shifting C. piggybacking D. shape shifting E. skimming
piggybacking
Integrated marketing communications are composed of all of the following EXCEPT: A. advertising. B. sales promotions. C. trade shows. D. public relations. E. political rallying.
political rallying
A _____ involves complete political and economic integration, either voluntary or enforced. A. political union B. common market C. regional cooperation for development (RCD) D. customs union E. free trade area (FTA)
political union
The most fully integrated form of regional cooperation is called a: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).
political union
_____ allows ESPN to fill visual real estate—blank walls, streets, stadium sidings—with computer-generated visuals that look like they belong in the scene. A. Self-extracting archive B. Princeton Video Imaging C. High Definition Television D. Word of Mouth E. Conditional Access System
princeton video imaging
In Spain, a new medium for advertising called Publicoche includes: A. lasers projected onto clouds. B. private cars that are painted with advertisements. C. buses fitted with television sets showing promotional messages. D. financing of popular sporting and entertainment events. E. hot air balloons printed with promotional messages.
private cars that are painted with advertisements
An especially effective promotional tool when a product concept is new or has a very small market share is known as _____. A. sponsorship B. sweepstakes C. product sampling D. contests E. product tie-ins
product sampling
Economic planners are often more _____ oriented than marketing oriented. A. production B. human resource C. logistics D. theory E. distribution
production
_____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market. A. Flexibility B. Hypersensitivity C. Cultural empathy D. Productivity E. Breadth of knowledge
productivity
Creating good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators—is the role of _____. A. trade shows B. direct selling C. public relations D. personal selling E. sales promotion
public relations
Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events? A. Public relations B. Direct selling C. Trade shows D. Personal selling E. Sales promotion
public relations
Which of the following are considered to be major communications media in most countries due to their inherent entertainment value? A. Newspapers and magazines. B. Radio and television. C. Newspapers and the Internet. D. Billboards and television. E. Radio and newspapers.
radio and television
Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in: A. the Internet and social networking forums. B. personal selling initiatives. C. radio and television broadcasting. D. trade shows and exhibitions. E. direct selling and sales promotions.
radio and television broadcasting
In the communications process in advertising, during the _____ stage, a consumer takes certain actions to respond to a decoded message. A. feedback B. receiver C. message channel selection D. encoding E. source identification
receiver
The most basic economic integration and cooperation is the: A. political union. B. common market. C. regional cooperation for development (RCD). D. customs union. E. free trade area (FTA).
regional cooperation for development (RCD)
The negotiators in the Pearl River Delta are reputed to be: A. much more calculating than traders in Shanghai. B. relatively honest and forthright. C. very poor traders. D. more interested in making long-term gains. E. cut-off from foreign influences.
relatively honest and forthright
When countries sell off state-owned enterprises, it usually results in a(n): A. surge in household expenditure. B. decline in productivity throughout the private sector. C. release of capital to invest elsewhere. D. change in political leadership. E. increase in unemployment rate.
release of capital to invest elsewhere
In the context of international advertising, companies are moving from the commission system to a _____ system. A. tactical B. standardized C. reward-by-results D. self-regulation E. business-to-business
reward by results
_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations
sales promotion
_____ are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations
sales promotion
In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices. A. personal selling B. sales promotions C. trade shows D. direct selling E. public relations
sales promotions
In the context of controlling middlemen, parallel importing is also known as _____. A. secondary wholesaling B. black marketing C. backwashing D. industrial piracy E. smuggling
secondary wholesaling
With respect to the evolution of the marketing process, which of the following would be considered to be the most fundamental substage (first substage)? A. Surplus commodity product B. Commercial transition C. Mass production D. Mass distribution E. Self-sufficient
self-sufficient
The negotiators from the Shanghai area are famous for their: A. shrewdness. B. tendency to be closemouthed. C. low spending habits. D. lack of creativity. E. imperialist perspective.
shrewdness
_____ are considered to be the foundation of the Japanese distribution system. A. Consumers B. Brokers C. Manufacturers D. Small retailers E. Wholesalers
small retailers
Blogs, social networking, and video sharing are examples of media commonly known as _____. A. global media B. local media C. social media D. Texas Visual Imaging E. widespread media
social media
In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____. A. literacy rate B. rate of inflation C. population growth D. speed of economic development E. currency exchange rate
speed of economic development
With respect to political factors that affect supranational markets, which of the following is one of the most cherished possessions of any nation? A. A two-party system. B. A three-party system. C. A high voting rate. D. State sovereignty. E. A benevolent upper class.
state sovereignty
Which of the following actions should be taken to begin with the search for prospective middlemen? A. Short listing the middlemen. B. Studying the target market. C. Evaluating the available financial resources. D. Designing the sales force required. E. Understanding the mission of the manufacturing firm.
studying the target market
A market in which the only marketing function performed is exchange is most like to be classified under the _____ stage. A. surplus commodity product B. commercial-transition C. mass production D. mass distribution E. self-sufficient
surplus commodity product
Which is the trade group that is part of Europe and Asia and has emerged and persisted since the dissolution of the Soviet Union comprising of all the republics save the Baltic States? A. The European Union East. B. The Commonwealth of Independent States. C. The Eastern Bloc Economic Area. D. The European Free Trade Association. E. The Euro-Soviet Union.
the Commonwealth of Independent States
Which of the following European Union institutions originally had only a consultative role, but can now amend and adopt legislation? A. The European Parliament. B. The Council of Ministers. C. The Court of Justice. D. The European Commission. E. European Central Bank.
the European Parliament
Which of the following was a customs union before becoming a common market? A. NAFTA B. OECD C. The European Steel and Coal Community D. The European Union E. The Council for Mutual Economic Assistance
the European Union
_____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy. A. The radio B. Direct mail C. Magazines D. Newspapers E. The Internet
the Internet
The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts? A. The Sherman Antitrust Act. B. The Federal Communications Act. C. The Trade Commission Act. D. The Food, Drug, and Cosmetics Act. E. The Robinson-Patman Act.
the Sherman Antitrust Act
Which of the following makes the South African market an important base for serving nearby African markets that are too small to be considered individually? A. The official start of apartheid. B. The South African market's developed infrastructure. C. The economic embargo imposed by the United Nations. D. The existence of inward-looking trade and investment policies. E. The South African government's nationalization initiative.
the South African market's developed infrastructure
____ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MIDCs, LDCs, and LLDCs. A. The U.S. Department of Commerce B. The North Atlantic Treaty Organization C. The International Organization for Standardization D. The United Nations E. The World Trade Organization
the United Nations
E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere. A. China B. Brazil C. Switzerland D. South Africa E. the United States
the United States
Which of the following is an example of the primary attribute of a product? A. The ability of a camera to take a picture. B. The design and form factor of a phone. C. The color of a laptop. D. The prestige associated with driving a car. E. The eco-friendly functioning of a digital watch.
the ability of a camera to take a picture
Which of the following drafted the Maastricht Treaty that was presented to the European Union member states for ratification? A. The United Nations. B. The World Trade Organization. C. The European Commission. D. The Commonwealth Delineation. E. The Council of Ministers.
the council of ministers
One of the most important aspects of LAIA that differs from LAFTA, its predecessor, is: A. the differential treatment of member countries according to their level of economic development. B. the inclusion of rules of origin. C. the exclusion of tariff barrier. D. that members are forbidden from establishing bilateral trade agreements among member countries. E. introduction of a common currency for the member countries.
the differential treatment of member countries according to their level of economic development
Which agency established the parameters for the creation of the common currency for the European Union? A. The Economic policy agency. B. The Optimal currency area—eurozone. C. The Economy of Europe. D. The European Currency Reserve. E. The Economic and Monetary Union.
the economic and monetary union
Which of the following established the parameters of the creation of a common currency for the European Union? A. The Economic and Monetary Union of the European Union. B. The Single European Act of the Treaty of Rome. C. The European Commission of the European Union. D. The European Common Judicial Council. E. The European Economic Council.
the economic and monetary union of the european union
Which of the following is the reason for East Asia's economic success? A. The optimum usage of natural resources. B. The coupling of small markets into one viable market. C. The wealth of the general population. D. Its rich cultural heritage. E. The emphasis placed on education and healthcare.
the emphasis placed on education and healthcare
In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____. A. the selection of optimum container sizes B. volume discounts and rebates C. the functions performed by middlemen D. the local advertising modes E. the target market culture
the functions performed by middlemen
Direct mail is an unpopular medium in Chile because: A. the literacy level in Chile is extremely low. B. the letter carrier must collect additional postage for every item delivered. C. it uses paper and hence it is considered as a threat to the environment. D. its reach is extremely limited. E. it is subject to complicated government regulations.
the letter carrier must collect additional postage for every item delivered
A disadvantage when using home-country middlemen as intermediaries in the distribution process is: A. the large financial investment required. B. the limited control over the distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached. E. the large amount of commission.
the limited control over the distribution process
A major trade-off when using home-country middlemen is: A. the large financial investment required. B. the limited control over the entire distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached through the home-country middlemen. E. the large amount of commission charged by the home-country middlemen.
the limited control over the entire distribution process
Which of the following is true of the Maastricht Treaty? A. It allows for stabilizing currency exchange markets of the member nations. B. It allows each nation to have its own set of defense policies. C. It allows the formation of individual judicial systems of its members. D. The members are committed to a common justice system. E. It aims at economic consistency alone.
the members are committed to a common justice system
The European Union is anxious to admit new members; however, there have been problems. Which of the following problems has been deemed to be the most significant regarding new member admission? A. The threat of nuclear war. B. The problem of multiple currencies. C. The rise of Asia in the world arena. D. The prospect of illegal immigrants from the former Soviet Union. E. The economic instability of prospective members.
the prospect of illegal immigrants from the former Soviet Union
Privatization of state-owned enterprises results in _____. A. a decline in productivity throughout the private sector B. a surge in household expenditure C. the release of capital to invest in strategic areas D. a change in political leadership E. reduced modernization
the release of capital to invest in strategic areas
One of the drawbacks of satellites is: A. the cost of creating a high quality ad for satellite television. B. the limited market penetration of satellite television. C. the number of intermediaries required for satellite service transmission. D. the government regulations placed on satellite advertising. E. their ability to span a wide geographical region.
their ability to span a wide geographical region
Which of the following statements is true regarding merchant middlemen? A. They represent the best interests of a manufacturer. B. They can be controlled better than agent middlemen. C. They assume trading risks. D. They work on commission and arrange for sales in the foreign country. E. They do not take title to manufacturers' goods.
they assume trading risks
Which of the following is true of large multinational markets? A. They lead to negligible marketing efficiencies. B. They are incapable of achieving economies of scale. C. They are particularly important to businesses not accustomed to mass production. D. They result in decreased purchasing power. E. They employ coordinated programs to foster economic growth.
they employ coordinated programs to foster economic growth
All of the following are traits of big emerging markets (BEMs) EXCEPT: A. they import less than smaller markets. B. they are all physically large. C. they have significant populations. D. they are regional economic drivers. E. they are of major political importance within their regions.
they import less than smaller markets
The long-term goal of the LAIA (Latin American Integration Association), better known by its Spanish acronym, ALADI, is: A. to improve the literacy levels in member countries. B. to reduce the child mortality rates in member countries. C. to establish a Latin American common market. D. to establish a common currency for all its member countries. E. to standardize the industrial production in the member countries.
to establish a Latin American common market
Which of the following is a provision of the commonwealth agreement? A. To reject the powers of the old regimes. B. To keep the ruble but allow new currencies. C. To create disjointed control of nuclear weapons. D. To invalidate all Soviet foreign treaties and debt obligations. E. To avoid creating a European Union-style free trade association.
to keep the ruble but allow new currencies
Experienced exporters suggest that the only way to select a middleman is: A. to conduct a background check on all the distributors available in the target market. B. to issue a request-for-proposal to all distributors in the target market and evaluate their responses. C. consult other manufacturers of the similar products and select the distributor recommended by them. D. consult trade organizations and select the distributor recommended by them. E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.
to personally talk to ultimate consumers to find whom they consider to be the best distributors
The assault on advertising of _____ is escalating internationally, as evidenced by the World Health Organization launching a global campaign against it. A. trans-fats B. alcohol C. tobacco D. pharmaceuticals E. animal derived products
tobacco
For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. A. trade representatives B. trading companies C. brokers D. export management companies E. complementary marketers
trading companies
In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. A. domestic B. traditional C. manufacturer-oriented D. service E. customer-oriented
traditional
The quality of an infrastructure directly affects a country's economic growth potential. True False
tru
A free trade area (FTA) provides its members with a mass market without barriers to impede the flow of goods and services. True False
true
A major issue that China has to address in its path to economic growth is improving human rights. True False
true
A reason for the failure of marketing communications is that the message received by the intended audience is not understood because of different cultural interpretations. True False
true
According to analysts, Japan's long entrenched Liberal Democratic political party was one of the reasons for the Japanese crisis. True False
true
Agent middlemen work on commission and do not take title to the merchandise. True False
true
Among three kinds of distances that international marketers must traverse, time zones have the greatest influence on the success of their commercial efforts abroad. True False
true
An e-vendor in a foreign market can generally ignore culture as an important variable because the commerce is being done via the Internet that is culturally insensitive. True False
true
An export management company functions as a low-cost, independent marketing department with direct responsibility to the parent firm. True False
true
An important objective of the member states of the United Nations is bringing about mutual economic development. True False
true
As a country develops, market behavior changes and eventually it leads to market segmentation. True False
true
As traditional channel structures are changing, importers and retailers are also becoming involved in new product development. True False
true
At the most general level, the WTO represents the most important and comprehensive trade agreement in history. True False
true
Big emerging markets are of major political importance within their regions. True False
true
Channels of distribution often pose longevity problems. True False
true
China's "one country, two systems" agreement with Hong Kong guarantees the latter a high degree of autonomy. True False
true
China's longest border is with Russia. True False
true
Competitive advertising is a source of noise in the international communications process. True False
true
Different cultures often seek the same value or benefits from the primary function of a product. True False
true
Domestic middlemen are most likely to be used when the marketer desires to minimize financial and management investment. True False
true
Economic development means rapid economic growth and increases in consumer demand. True False
true
Errors at the receiver end of the international communications process do not occur if the message is encoded properly. True False
true
Ideally, a website should be translated into the languages of the target market. True False
true
In the Treaty of Amsterdam (1977), the European Union agreed to accommodate the changes brought about by the monetary union and the admission of new members. True False
true
In the context of advertising, a marketer's self-reference criterion (SRC) affects the ultimate success of the communication. True False
true
In the context of international advertising, search engines have now become crucial directors of Internet users' attention. True False
true
In the context of retail patterns, direct marketing works well in affluent markets as well as in markets with underdeveloped distribution systems. True False
true
In the traditional distribution structure, independent agencies that provide facilitating functions are nonexistent or underdeveloped. True False
true
In view of China's size, diversity, and political organization, it is not possible to have one-growth strategy for China. True False
true
Iran, Pakistan, and Turkey, formerly the Regional Cooperation for Development (RCD),have renamed their regional group the Economic Cooperation Organization (ECO). True False
true
Liaoning and Jilin provinces of China share borders with North Korea, and both provinces host substantial numbers of Korean minorities. True False
true
Multinational market regions are those groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers. True False
true
Negotiators from the Beijing area are known for their unusual bureaucratic sloth and imperialist perspective. True False
true
Northeast China was the industrial and technological center of the country in the 1970s and 1980s. True False
true
Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among country markets. True False
true
One of the drawbacks of satellites is also their strength, that is, their ability to span a wide geographical region covering many different cultures. True False
true
One of the most important aspects of LAIA that differs from LAFTA is the differential treatment of member countries according to their level of economic development True False
true
Privatization of industries released immediate capital to invest in strategic areas. True False
true
Problems of literacy, media availability and types of media create problems in the international communications process at the encoding step. True False
true
Sales promotions are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. True False
true
Sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of a market. True False
true
Ten new countries joined the European Union in 2004 followed by Bulgaria and Romania in 2007 True False
true
The Asian financial crisis led to the creation of the ASEAN+3. True False
true
The Commonwealth of Independent States is a loose economic and political alliance with open borders but no central government. True False
true
The DR-CAFTA includes a wide array of tariff reductions aimed at increasing trade and employment. True False
true
The European Union was created when the 12 nations of the European Community ratified the Maastricht Treaty. True False
true
The Export Trading Company Act allows producers of similar products to form export trading companies in the U.S. True False
true
The Hong Kong dollar is freely convertible. True False
true
The Japanese have an affinity for united effort. True False
true
The UN classification has been criticized because it no longer seems relevant in the rapidly industrializing world. True False
true
The United States has granted NTR (normal trade relations) status to Vietnam. True False
true
The WTO is wholly dedicated toward making trade among nations more efficient. True False
true
The behavior of channel members in the distribution process is the result of the interactions between the cultural environment and the marketing process. True False
true
The blueprint for the European Union began with the Treaty of Rome in 1957. True False
true
The feedback step of the international communications process is important as a check on the effectiveness of the other steps. True False
true
The first Soviet republics to declare independence were the Baltic States. True False
true
The initial aim of a multinational market is to protect businesses that operate within its borders. True False
true
The liberalization of trade and investment policies in developing countries is changing the way countries will trade and prosper in the 21st century. True False
true
The most advanced and viable of Africa's regional organizations is called the Southern African Development Community. True False
true
The presence of large, accessible markets with low tariffs has contributed to the economic growth of newly industrialized countries (NICs). True False
true
The region of Shenzhen was designated as China's first Special Economic Zone. True False
true
The role of public relations is to create good relationships with the popular press and other media to help companies communicate messages to their publics—customers, the general public, and governmental regulators. True False
true
The trend toward privatization is currently a major economic phenomenon in industrialized as well as in developing countries. True False
true
Trading companies provide the best means for intensive coverage of the market. True False
true
Traditional channels in developing countries evolved from economies with a strong dependence on imported manufactured goods. True False
true
What is occurring in the BEMs is analogous to the situation after World War II when tremendous demand was created during the reconstruction of Europe. True False
true
While developing an international advertisement campaign, the last step of the process is evaluating the campaign relative to the goals specified. True False
true
With the adoption of the euro, price differentials are much easier to spot, and the consumer can search for the best bargains in brand-name products more easily. True False
true
In the context of media planning and analysis, billboards are especially useful in countries: A. with high income levels. B. where the laws governing the Internet are very complicated. C. with high illiteracy rates. D. where sales promotions are not efficacious. E. where people prefer buying in small quantities.
with high literacy rates